Yellen rules out bailout for Silicon Valley Bank: "not going to do that again"/Greg Becker, SVB CEO, sold $3.5 million in stock 2weeks before collapse

[multivita-man]

Not only sold stock but paid annual bonus to all the employees, during the last two days?

Paying their employees for work that they performed is the morally and legally correct thing to do.

I have a much dimmer view of executives and major investors selling their stock. Wouldn't surprise me if Peter Thiel (and others) withdrew and shorted the stock. Legalized corruption. Capitalism at its finest, just the way Adam Smith envisioned it.

 

[iamwhatiseem]

There is no one in Biden's administration that is going to be able to do anything constructive as this mirage of an economy we have is straining and straining to stay positive.
If a significant adjustment happens, I shudder - truly - as to what this administration will end up doing. Biden will not even begin to muster enough cognitive reasoning to even address it.
Yellen has not had one real accomplishment other than occupy chairs for the past 30 years. She is best known for perpetuating the lie of gender wage gap than anything else.
If this economy starts tilting back in an irreversible way - we will get nothing from these guys. Besides blaming Trump.

 

[pknopp]

Agreed, it was Powell's strong push of higher interest rates did it, is the WSJ consensus. On the other hand, you canNOT break inflation without breaking other things about the financial system. And so, here we are. Where exactly that is, we should find out starting Monday.

The problem is breaking the system built upon never ending continual pumping. Yes the banks are pissed it stopped.

 

[pknopp]

Paying their employees for work that they performed is the morally and legally correct thing to do.

I have a much dimmer view of executives and major investors selling their stock. Wouldn't surprise me if Peter Thiel (and others) withdrew and shorted the stock. Legalized corruption. Capitalism at its finest, just the way Adam Smith envisioned it.

The bank continued to give loans to entities not making the payments on their previous loans. Why? This is how one earns ones bonus.

 

[iamwhatiseem]

The bank continued to give loans to entities not making the payments on their previous loans. Why? This is how one earns ones bonus.

Exactly.
SVB's business plan was based on never running out of borrowed money.
1) Borrow $50 mill and loan all of it out to high risk ventures.
2) Lose $5 mill of that... no problem just borrow another $50 mill and repeat. And repeat. And repeat.

 

[Synthaholic]

Democrats are tired of cleaning up Republican fuck ups.

 

[leftwinger]

Paying their employees for work that they performed is the morally and legally correct thing to do.

I have a much dimmer view of executives and major investors selling their stock. Wouldn't surprise me if Peter Thiel (and others) withdrew and shorted the stock. Legalized corruption. Capitalism at its finest, just the way Adam Smith envisioned it.

If you had $1 billion in the bank, then you dont mind sharing $750 million. Nice of you.

 

[pknopp]

If you had $1 billion in the bank, then you dont mind sharing $750 million. Nice of you.

Better than the millions that had nothing in the bank.

 

[leftwinger]

Well, here's hoping it's an isolated incident and not a domino?

Guess i'll go to NCAA bracketology. Bread & Circus time.

 

[multivita-man]

Democrats are tired of cleaning up Republican fuck ups.

Agreed that Trump/GOP is the problem, but there are some Senate Dems that are pretty terrible corporate cheerleaders, too.

 

[pknopp]

Agreed that Trump/GOP is the problem, but there are some Senate Dems that are pretty terrible corporate cheerleaders, too.

Most all of them. To note again, this happened under Biden. Why wasn't the regulators under Biden on top of this?

 

[basquebromance]

I don't care what happens with the American economy or if more banks fail or whatever, i'm not emotionally invested in it. i already have a boatload of cash, my family has an even bigger boatload of cash

 

[Rogue AI]

Endless fiat currency, excessively low interest rates, and an economy based almost purely on speculation, what could go wrong? Oh, I see now.

 

[basquebromance]

tip #1 for young entrepreneurs:

Timing of your sale is extremely important, as many of the strategies you have to avoid paying capital gains taxes, can only be implemented before you sell the asset. Once you’ve sold the asset, your options for reducing capital gains tax become very limited.

 

[basquebromance]

tip #2 for young entrepreneurs

Opportunity Zones – How To Pay ZERO Taxes On Real Estate

Opportunity Zones - How To Pay ZERO Taxes On Real Estate -

Opportunity Zones Explained: How would you like to invest in Real Estate without paying taxes? Sounds too good to be true right?

investdiva.com

 

[basquebromance]

tip #3 for young entrepreneurs:

We have a saying in our business: Don't let the tax tail wag the dog. In other words, don't make moves to minimize taxes that you may come to regret later. We'd recommend sitting down with your adviser to figure out what is the best long-term strategy for you.

 

[Mac-7]

I can't agree --- I don't know where you are getting your info, but the Wall Street Journal says the UK IS looking into taking over the British bank of SVB to avoid contagion, to which their financial system is particularly prone lately (that was why they lost a prime minister after only a month in office last year).

AND there is as of 10 AM in the WSJ report, talk of making all SVB depositor whole no matter how much was in their accounts. 90% of the money in that bank was uninsured because the amounts were so large. Companies cannot plausibly go to dozens of banks if they have millions to store, after all! They have to trust the banking system, or else the system goes down. They did just this in 1991 when New England bank failed, made everyone whole never mind that quarter-million FDIC limit.

I'd be okay with that. . . anyone else?

It breeds irresponsibility

Banks are free to take chances with the blessing of depositors when they know government will take care of them

 

[basquebromance]

 

[Circe]

The problem is breaking the system built upon never ending continual pumping. Yes the banks are pissed it stopped.

Right, I saw that reading more in the thread. Well, you do have a point there. I agree, they do too much artificial pumping of the system, and then when they stop, things break.

 

[leftwinger]

I don't care what happens with the American economy or if more banks fail or whatever, i'm not emotionally invested in it. i already have a boatload of cash, my family has an even bigger boatload of cash

thats just stupid. 100 million could come after your cash. Where do you keep it? In your bedroom? You sit there with a shotgun 24-7?

what do you do when not much keft to buy or the power goes off?